When buying an apartment in Sydney, one of the most important steps in your due diligence is reviewing the strata report. It provides insights into the building’s financial health, maintenance history, and potential risks. Too many buyers skim over it or rely solely on the selling agent’s comments, which can lead to expensive surprises down the track. If you’re a first home buyer, you may also find our guide helpful: 10 Tips for First Home Buyers.
What is a strata report?
A strata report is an inspection of the records held by the owners corporation. It includes financial statements, meeting minutes, insurance details, special levies, defects reports, legal disputes, warranty claims, and by-laws that govern the building.
Key things to look for in a strata report
• Financial health – Review the Capital Works Fund and Administrative Fund. A low balance may indicate future levies for repairs.
• Special levies – Check if any special levies have been raised or proposed. These can significantly increase your costs.
• Maintenance and repairs – Look for past issues like water penetration, structural defects, or fire safety compliance. Repeated mentions in minutes can signal unresolved problems.
• Defects and warranty claims – Pay close attention to any mention of building defects, especially in newer developments where warranty claims may still be active. These can become costly disputes if not managed properly.
• Legal disputes – Review whether the owners corporation is involved in litigation, for example against a builder or developer. Legal disputes can drag on for years and often result in large costs for owners.
• By-laws – Understand rules about pets, renovations, parking, and short-term letting before you commit.
Why it matters
A strata report tells you whether the building is well-run or heading for financial and maintenance problems. It’s not just about buying an apartment — you’re buying into a community with shared responsibilities. Missing red flags like defects, legal disputes, or low funds could mean costly special levies, unexpected repairs, or lifestyle restrictions.
Do you need a professional to review it?
While buyers can read a strata report themselves, professional interpretation adds another layer of protection. With years of experience reviewing these reports for buyers, we know how to identify patterns, risks, and issues that may not be obvious on the surface. We can review the report and provide you with a clear summary of the key findings, giving you confidence before you buy.
FAQs
What is the cost of a strata report in Sydney?
Strata reports usually cost between $300 and $500, depending on the size of the building and the complexity of the records.
Who orders the strata report?
The buyer is usually responsible for ordering and paying for the strata report. However, sometimes sellers arrange one for marketing purposes. We highly recommend that you get your independent report and not rely on bidding platforms or agent supplied reports.
Can a bad strata report kill a deal?
Yes. If the report reveals major defects, ongoing legal disputes, or financial instability, it may be best to walk away or renegotiate the price. Some can be that bad that you need to consider walking away.
Paul Mulligan is the Principal Buyers Agent & Expert Negotiator at MULLIGAN Buyers Agents, Sydney. One of only two buyer’s agents in Australia to complete Negotiation Mastery at Harvard Business School, Paul combines advanced negotiation skills with over 30 years of market expertise to achieve outstanding results for property buyers. Passionate about helping clients avoid costly mistakes, he provides expert guidance throughout the buying process from search to settlement.
